briefly explain regulation in the case of a natural monopoly. provide 3 common examples of regulation. briefly discuss the benefits of privatization set out in the text and explain what is required for privatization of a nationalized asset in order for privatization to work well.

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19-12-2022
Business

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briefly explain regulation in the case of a natural monopoly. provide 3 common examples of regulation. briefly discuss the benefits of privatization set out in the text and explain what is required for privatization of a nationalized asset in order for privatization to work well.

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contexto1019 contexto1019 · Answer 1 · 2022-12-23T21:58:39+01:00

Since there won't be enough competition in the event of a natural monopoly, the government may decide to control price and/or output rather than allowing the monopoly to raise prices and decrease output unchecked.

The regulated businesses that frequently offer water and electricity service are known as public utilities and are common instances of regulation. By transferring to private owners formerly nationalized assets, privatization may boost market competitiveness and efficiency.

Privatization must, however, offer incentives for a company to be run more effectively in order to succeed, as opposed to merely substituting uncontrolled private monopoly ownership for government ownership.

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